UPSC Mains Current Affairs for 6 July 2026

by Vajiram & Ravi - 6 July 2026

Vajiram & Ravi provides Daily UPSC Mains Current Affairs for 6 July 2026, tailored for aspirants. We cover all relevant news and events crucial for the exam, ensuring you stay updated & well-prepared.

PLFS and ASUSE 2025 – Labour Market and Informal Enterprise Trends

July 6, 2026
PLFS and ASUSE

PLFS and ASUSE Latest News

  • The National Statistics Office (NSO) has released two new reports, Labour Market Dynamics in Million-plus Cities and Urban Unincorporated Enterprise Landscape: ASUSE 2025, providing the first comprehensive statistical profile of employment and informal enterprises across India's 46 million-plus cities.

Periodic Labour Force Survey (PLFS)

  • The Periodic Labour Force Survey (PLFS) is conducted by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). 
  • Introduced in 2017, it replaced the earlier Employment-Unemployment Surveys to provide more frequent and reliable labour market data.
  • Objectives
    • Estimate employment and unemployment indicators
    • Measure labour force participation in rural and urban areas
    • Generate annual and quarterly labour market statistics
    • Support evidence-based policymaking on employment and skill development

Key Labour Market Indicators

  • PLFS measures several important indicators:
    • Labour Force Participation Rate (LFPR): Percentage of the population that is either employed or actively seeking work. 
    • Worker Population Ratio (WPR): Percentage of the population that is employed. 
    • Unemployment Rate (UR): Percentage of the labour force that is unemployed but actively seeking work. 
    • Current Weekly Status (CWS) and Usual Status (US): Two different reference periods used to estimate employment and unemployment. 
  • PLFS has become India's principal source of official labour market statistics.

Annual Survey of Unincorporated Sector Enterprises (ASUSE)

  • The Annual Survey of Unincorporated Sector Enterprises (ASUSE) is another flagship survey conducted by the NSO.
  • It covers unincorporated non-agricultural enterprises, excluding construction, and provides information on:
    • Employment generation
    • Number of enterprises
    • Gross Value Added (GVA)
    • Productivity
    • Wages and emoluments
    • Ownership patterns
  • ASUSE primarily includes Manufacturing units, Trade establishments and Service enterprises.
  • Since the informal sector contributes significantly to India's employment and urban economy, ASUSE serves as an important source of policy inputs for MSMEs, urban development, and labour reforms.

Key Findings from PLFS 2025

  • The report presents labour market estimates for persons aged 15 years and above across India's 46 cities with million-plus population.
  • Improving Labour Market Indicators
    • The survey indicates steady improvements in urban labour market conditions.
    • Labour Force Participation Rate (LFPR) in million-plus cities stood at 52.4%, slightly higher than 52.1% in other urban areas. 
    • Worker Population Ratio (WPR) reached 49.8%, compared to 49.6% in other urban centres. 
    • Unemployment Rate (UR) under the Usual Status declined to 4.9%, broadly comparable with the national urban average of 4.8%. 
    • The report notes that unemployment in million-plus cities has shown a steady decline since 2017-18, reflecting improving labour market conditions.
  • Higher Female Participation
    • One of the most notable findings is the improvement in women's participation.
    • The female Worker Population Ratio increased from 17.9% in 2017-18 to 25.5% in 2025, an increase of 7.6 percentage points, exceeding the improvement recorded for men.
    • The survey also reports that million-plus cities have a lower proportion of youth (15–29 years) who are Not in Employment, Education or Training (NEET) than other urban areas.
  • Nature of Employment
    • Employment in large cities is characterised by greater formalisation. According to the report:
    • 58.5% of workers were engaged in regular wage or salaried employment, compared to 42.9% in other urban areas. 
    • Casual labour accounted for only 6.3% of employment, indicating relatively stable employment opportunities in larger cities. 
    • Workers in million-plus cities also recorded higher average hours of work than workers in other urban areas.

Key Findings from ASUSE 2025

  • The ASUSE report provides the first city-level estimates for India's informal non-agricultural sector.
  • Scale of the Informal Economy
    • The survey estimates that India's 46 million-plus cities account for:
    • 39 lakh unincorporated establishments. 
    • 1.98 crore informal workers. 
    • Nearly 13% of all informal establishments in the country. 
    • Around 16% of total informal employment. 
    • Approximately 21% of Gross Value Added (GVA) generated by India's unincorporated non-agricultural sector. 
    • These cities span 17 States and 1 Union Territory, highlighting the growing importance of urban informal enterprises.
  • Cities with the Highest Informal Employment
    • Among million-plus cities:
    • Greater Hyderabad recorded the highest number of informal workers (15.7 lakh). 
    • Kolkata had the largest number of unincorporated enterprises (8.84 lakh). 
    • Delhi, Bengaluru, Surat, Jaipur and Greater Mumbai also emerged as major informal employment centres. 
    • Together, the six largest cities accounted for nearly 40% of all informal workers across the country's million-plus cities.
  • Women in the Informal Sector
    • Women constituted approximately 52 lakh workers, representing 26% of the informal workforce in these cities.
    • However, female participation varied significantly across cities:
    • Greater Visakhapatnam recorded the highest female workforce participation at 42.5%. 
    • Surat followed with 41.4%. 
    • Srinagar recorded the lowest female participation at 10.5%, followed by Varanasi (12.1%). 
    • These differences reflect variations in local economic structures, industrial composition, and social factors.
  • Productivity and Wages
    • Large cities also displayed higher productivity. According to ASUSE:
    • Pimpri-Chinchwad, Greater Hyderabad, and Delhi recorded the highest Gross Value Added (GVA) per worker. 
    • Jaipur reported the highest average annual emoluments per hired worker at Rs. 2.33 lakh, followed by Greater Hyderabad (Rs. 2.14 lakh). 
    • On average, hired workers across the 46 cities received annual emoluments of around Rs. 1.51 lakh. 
    • The findings indicate considerable differences in productivity and wage levels across urban India.

Policy Implications

  • The two reports offer valuable insights for policymaking. Key policy priorities include:
    • Promoting quality employment in urban areas
    • Strengthening MSMEs and informal enterprises
    • Increasing women's labour force participation
    • Enhancing urban skill development programmes
    • Improving access to formal finance and social security for informal workers
    • Supporting productivity enhancement in urban enterprises
  • The reports also provide an important statistical foundation for initiatives linked to Viksit Bharat, urban planning, and employment generation.

Source: MoSPI

PLFS and ASUSE FAQs

Q1: What is the objective of the Periodic Labour Force Survey (PLFS)?

Ans: PLFS measures employment, unemployment, labour force participation, and other labour market indicators across India.

Q2: What does ASUSE cover?

Ans: ASUSE covers unincorporated non-agricultural enterprises, excluding construction, and provides data on employment, productivity, and enterprise characteristics.

Q3: Which city recorded the highest number of informal workers in ASUSE 2025?

Ans: Greater Hyderabad, with approximately 15.7 lakh informal workers.

Q4: Which city had the largest number of unincorporated enterprises?

Ans: Kolkata, with around 8.84 lakh unincorporated enterprises.

Q5: What was the unemployment rate in India's million-plus cities according to PLFS 2025?

Ans: The unemployment rate (Usual Status) was 4.9%.

Agnipath Scheme – Armed Forces Seek Higher Retention of Agniveers to Strengthen Combat Readiness

July 6, 2026
Agnipath Scheme

Agnipath Scheme Latest News

  • As the first batch of Agniveers recruited under the Agnipath scheme completes its four-year tenure later in 2026, the Indian Armed Forces are considering increasing the proportion of Agniveers retained as regular personnel. 
  • While the approved retention rate remains 25% across the Army, Navy and Air Force, internal discussions are underway to revise this based on operational experience, manpower requirements and technological advancements.

The Agnipath Scheme

  • Overview:
    • It is the Indian government's short-term military recruitment model (launched in 2022) for personnel below officer ranks.
    • Under this scheme, recruits/ "Agniveers" (between 17.5 and 23 years) serve for 4 years (including a 6 month training period). 
    • It aims to lower the military's average age (from 32 currently to around 26) and reduce the ballooning pension bill, with only 25% retained for a permanent 15-year commission.
    • An attractive, tax-exempt severance (Seva Nidhi Package) of roughly ₹11.71 lakh is provided upon completion (no pension), funded by the recruit's contributions and matching government funds.
    • Compensation for disability (up to Rs 44 lakh, depending on the severity of the disability) and death on duty (a total of Rs 1 crore, including the Seva Nidhi package and the soldier's unserved salary). 
  • Current retention framework:
    • The 25% retention is based on merit and willingness to continue.
    • The first batches, inducted in early 2023, will complete their tenure later this year.
    • All Agniveers are initially released, and only the selected candidates are re-enrolled as regular soldiers, sailors or airmen.
  • Employment opportunities for Agniveers: After completion of 4 year service -
    • The Ministry of Home Affairs (MHA) has earmarked 10% of vacancies in the Central Armed Police Forces (CAPFs) and the Assam Rifles for eligible Agniveers.
    • The Ministry of Ports, Shipping and Waterways has introduced initiatives to facilitate the smooth induction of former Agniveers into the merchant navy.
    • The Ministry of Defence (MoD) will provide 10% reservation for former Agniveers in recruitment to the Indian Coast Guard, all 16 Defence Public Sector Undertakings (DPSUs), etc.
  • Ongoing evolution:
    • Training infrastructure across the services has expanded significantly.
    • Agniveers receive:
      • Pay and allowances comparable to regular personnel during service.
      • Leave and welfare benefits similar to regular soldiers.
      • Multiple support measures through MoUs signed with banks for financial security.

Proposal for Higher Retention

  • The three services are reportedly examining an increase in retention. For example,
    • Indian Navy: Around 75% retention.
    • Indian Army and Indian Air Force: Around 50% retention.
  • These proposals are expected to be discussed with the Department of Military Affairs (DMA).
  • Although similar proposals were submitted earlier, they were returned for further evaluation.

Why are the Armed Forces Seeking Higher Retention?

  • Need for experienced personnel:
    • Four years of service provides Agniveers with operational exposure, specialised training and familiarity with advanced weapon systems.
    • A larger pool of experienced personnel would improve combat effectiveness during crises and conflicts.
  • Lessons from Operation Sindoor:
    • Operational experience demonstrated that Agniveers performed effectively.
    • However, soldiers with longer service displayed faster decision-making and superior responses due to repeated field deployments and extensive training.
  • Technological modernisation:
    • The Armed Forces are inducting advanced platforms, modern weapon systems and emerging technologies.
    • Personnel operating sophisticated equipment, particularly in the Navy and Air Force, require longer training cycles and sustained experience.
    • Higher retention would preserve critical technical expertise.
  • Addressing manpower shortages:
    • The Army currently faces an estimated shortage of around 1.8 lakh personnel.
    • Recruitment is being expanded, with approximately 70,000 Agniveers trained during the previous training cycle, and 90,000 vacancies expected in the upcoming recruitment cycle.
    • Greater retention would ease manpower gaps until recruitment reaches desired levels.
  • Unit cohesion and professionalism: Longer service helps build camaraderie, leadership qualities and institutional knowledge. Experienced personnel contribute to better teamwork, discipline and operational efficiency.

Alternative Approach Under Consideration

  • Even if the overall retention ceiling remains at 25%, the services may adopt differential deployment.
  • For example,
    • Specialised units requiring higher technical expertise could have a greater proportion of retained Agniveers.
    • Regular infantry or conventional units could continue with larger numbers of Agniveers serving their initial four-year tenure.
    • Newly raised Bhairav battalions are cited as a possible example of such a model.

Significance for Defence Reforms

  • The debate reflects the challenge of balancing two objectives:
    • Maintaining a young military profile, one of the core goals of Agnipath.
    • Ensuring adequate availability of experienced, technically skilled and combat-ready personnel amid evolving security challenges and rapid military modernisation.
  • The eventual decision on retention percentages is likely to shape India's long-term military manpower policy, operational preparedness and defence reforms.

Conclusion

  • Former Army Chief General Upendra Dwivedi described Agnipath scheme as a transformative manpower reform intended to create a younger, technologically capable and future-ready military. 
  • He emphasised that the scheme remains an evolutionary process, and any modifications should be guided by operational experience, institutional assessment and feedback after completion of the first full cycle.

Source: IE | IE

Agnipath Scheme FAQs

Q1: What is the rationale behind the proposal to increase the retention percentage of Agniveers?

Ans: Higher retention is intended to preserve operational experience, strengthen combat readiness, address manpower shortages, etc.

Q2: How has Operation Sindoor influenced the debate on reforms to the Agnipath scheme?

Ans: Operational lessons highlighted the value of experienced personnel alongside Agniveers.

Q3: What are the challenges of balancing a youthful military profile with operational effectiveness?

Ans: While a younger force improves agility and reduces pension liabilities, adequate retention is essential for institutional memory.

Q4: Why is specialised training becoming increasingly important in India's Armed Forces?

Ans: Rapid induction of advanced weapon systems and modern military technologies requires longer training periods.

Q5: What is the significance of the Agnipath scheme as a military manpower reform in India?

Ans: It seeks to create a younger, technology-oriented and future-ready force while evolving through operational feedback.

India’s Fisheries Crisis: Why Inshore Ecosystems Matter More Than Fish Stock Numbers

July 6, 2026
India's Fisheries Crisis

India's Fisheries Crisis Latest News

  • In February 2026, the Government of India released its latest report on the country's ocean fisheries. The government claimed that most of India's marine fish stocks are sustainable. 
  • This sounded like good news. But experts argue that this claim hides a bigger, more serious problem — the continuing destruction of India's inshore fishing grounds, the waters closest to the coast.

What Does the Government Claim

  • The government's report relied on data from the Central Marine Fisheries Research Institute (CMFRI). 
  • It said that most commercial fish stocks in India "are in good health." More specifically, it claimed that 91.1% of the 135 fish stocks studied in 2022 were found to be sustainable.

Questioning the Official Picture

  • The Food and Agriculture Organization (FAO) tells a very different story. In its country profile on India, the FAO says India's marine fisheries have hit a plateau. 
  • Most major fish stocks are already fully exploited. It also points to unregulated access to fisheries, which has led to overcrowding of trawlers competing for shrinking fish resources.
  • There's also a technical problem with how India measures "sustainability." CMFRI mainly uses landing data — this means it looks at how much fish fishermen actually catch, and estimates fish stocks in the sea based on that. 
    • This is like counting shells found on a beach and assuming that tells you how many shells exist in the entire sea.
  • Other countries use a more reliable method called stock assessment. This involves directly measuring how much fish and marine life actually exists in the sea, rather than just counting catches. 
  • India hasn't yet adopted this costlier method. As per analysts, this gap may be creating a hidden bias, possibly linked to India's rush to compete with China's fishing industry.

The Real Problem: Inshore Waters Are Dying

  • Catches have been falling steadily, and many fish species once common are now gone.
  • But the bigger issue isn't overfishing itself — it's the destruction of the inshore benthic environment (the seabed and its ecosystem near the coast). Many fisheries scientists now describe this zone as "destroyed."
  • India has a narrow continental shelf around most of its coastline (except in Gujarat and parts of Maharashtra, where it's wider). 
  • This shelf area overlaps with what's called the territorial sea — the waters within 12 nautical miles (22 km) of the shore. 
  • This zone is naturally the most fertile, ideal for species like shrimp to breed and grow. But this ecosystem is now badly damaged.

What's Causing the Damage?

  • Several factors are responsible:
    • Dams on major rivers block nutrients from reaching the sea.
    • Mangrove destruction removes natural breeding grounds for fish.
    • Pollution from industries, agriculture, and growing cities is entering coastal waters.
  • All these factors hit inshore waters far harder than the deep sea.

The Trawling Problem

  • One major driver of this damage is mechanised trawling — a fishing method that was actually introduced to India from abroad, only around 1960. It has since grown massively.
  • According to the government's own report, India now has 64,414 mechanised fishing vessels. This number keeps growing because there are almost no restrictions on new boats entering the fishery. 
  • Existing boats are also being upgraded with more powerful Chinese engines, letting them catch even more fish.
  • These trawlers continuously scrape the inshore seabed. This destroys plant and animal life living there. 
  • It has also created serious conflict with small-scale, traditional fishers, whose livelihoods are threatened by this competition.

Why Aren't Rules Enough?

  • There is a rule that mechanised trawlers cannot fish within 5 nautical miles of the coast. 
  • But this rule is poorly enforced, for two reasons:
    • Coastal states don't have enough staff or patrol boats to monitor inshore waters properly.
    • Governments have kept fishers themselves out of the management process, even though they could help enforce rules.
  • As a result, the inshore ecosystem keeps degrading. This pushes both small-scale and mechanised fishers further out into offshore and deep-sea waters.

Is Deep-Sea Fishing the Solution?

  • The government is encouraging fishers to shift toward deep-sea fishing, seeing it as a solution. But the FAO is doubtful. 
  • It says that deep-sea fishing can offer, at best, only a marginal increase in output — not a real solution to the crisis.
  • This approach also adds a burden on fishers. They now need more fuel and better technology just to travel farther out to sea. 
  • Meanwhile, the real problem — a poorly managed inshore zone — remains unaddressed.

The Palk Bay Example

  • Experts point to Palk Bay, the waters between India and Sri Lanka. 
  • India's mechanised fishing fleet regularly fishes in Sri Lankan waters, harming small-scale Sri Lankan fishers on the other side. 
  • This happens regardless of who controls the island of Katchatheevu — showing how mechanised fishing's political and economic weight overrides proper management even across international boundaries.

The Way Forward

  • The core message here is this: better numbers for fish stocks don't mean fisheries are actually sustainable. What India truly needs is stronger governance of its coastal waters. 
  • This means:
    • Addressing marine pollution seriously
    • Better management and control of mechanised trawling
    • Involving small-scale fishers in decision-making
  • The FAO has echoed this, stating that India needs stronger efforts at both the federal and state level to properly manage its marine fisheries. 
  • Analysts also suggest that CMFRI should study the actual health of the seabed ecosystem itself, not just catch data — this would give India a much better foundation for future policy.

Source: TH | TH

India's Fisheries Crisis FAQs

Q1: What is the real cause of India's Fisheries Crisis?

Ans: India's Fisheries Crisis is driven by the destruction of inshore marine ecosystems through mechanised trawling, pollution, habitat degradation and weak fisheries governance.

Q2: Why do experts question official claims about India's Fisheries Crisis?

Ans: Experts argue India's Fisheries Crisis is underestimated because sustainability assessments rely mainly on fish landing data instead of comprehensive stock assessment methods.

Q3: How does mechanised trawling worsen India's Fisheries Crisis?

Ans: Mechanised trawling intensifies India's Fisheries Crisis by damaging seabed ecosystems, reducing fish breeding habitats and creating conflicts with traditional fishing communities.

Q4: Is deep-sea fishing a solution to India's Fisheries Crisis?

Ans: Deep-sea fishing offers only limited relief to India's Fisheries Crisis because it fails to address the degradation of productive inshore fishing grounds.

Q5: What reforms are needed to address India's Fisheries Crisis?

Ans: India's Fisheries Crisis requires stronger coastal governance, stricter trawling regulation, pollution control, scientific stock assessment and greater participation of traditional fishers.

IBC-PMLA Conflict: Understanding the Clash Between Insolvency and Anti-Money Laundering Laws

July 6, 2026
IBC-PMLA Conflict

IBC-PMLA Conflict Latest News

Background of the Case

  • Siddhi Vinayak Logistics Ltd. is at the centre of this dispute. Its promoters are accused of serious financial crimes — bank fraud, forgery, criminal conspiracy, and diverting loan funds worth more than ₹1,600 crore.
  • The Enforcement Directorate (ED) started action under the PMLA and provisionally attached the company's assets in 2017. This means the ED legally seized control of these assets on the suspicion they were linked to crime.
  • A few months later, the company entered the Corporate Insolvency Resolution Process (CIRP) under the IBC. This automatically triggered a moratorium under Section 14 of the IBC.
    • A moratorium is basically a "pause button." Once it kicks in, no one can start or continue legal proceedings to recover money, enforce security interests, sell company assets, or cancel important contracts against the company. 
    • The idea is simple: keep all the company's assets safe and intact while the insolvency process figures out how to fairly repay creditors.

What Happened Despite the Moratorium?

  • Even though the moratorium was in place, the ED still withdrew ₹2.29 crore from one of the company's bank accounts. 
  • Later, in 2019, while the company was going through liquidation, the ED provisionally attached more than 6,000 vehicles owned by the company.
  • The liquidator (the official managing the company's liquidation) challenged these ED actions before the National Company Law Tribunal (NCLT). 
  • The liquidator argued that these actions violated the IBC moratorium, since they reduced the assets available to repay creditors. 
  • The NCLT rejected this argument, so the matter went up to the NCLAT.

Why Do the IBC and PMLA Clash?

  • These two laws exist for very different purposes:
    • The IBC aims to resolve corporate insolvency in an orderly way. Its goal is to preserve a company's assets so that creditors can recover what they're owed.
    • The PMLA gives the ED power to identify, attach, and eventually confiscate any assets suspected to be "proceeds of crime."
  • The key legal question before the tribunal was this: does the protection given by the IBC moratorium also cover assets that are simultaneously under investigation by the ED under the PMLA?

What Did the NCLAT Decide?

  • The NCLAT framed this as a conflict between two laws, not between the liquidator and the ED as parties. It held that both laws operate in separate legal territories.
  • The tribunal's key reasoning was this: the IBC was designed to help creditors recover value from a company's legitimate assets. 
  • It was never meant to legalise or protect wealth that came from criminal activity. So, the Section 14 moratorium only protects assets that were acquired lawfully — it does not extend to assets alleged to be proceeds of crime under the PMLA.
  • The tribunal acknowledged that creditors often accept reduced recovery amounts during insolvency. 
  • But it said the national interest behind anti-money laundering law cannot be sacrificed just because a company happens to be going through insolvency.
  • This judgment settles an important question of law: insolvency proceedings under the IBC cannot be used as a shield to stop the ED from attaching or holding onto assets suspected to be proceeds of crime. 
    • In simple terms, going bankrupt does not offer any escape route from anti-money laundering action.

Can Insolvency Tribunals Question ED's Attachment Orders?

  • No. The NCLAT made this clear too. It said insolvency tribunals like the NCLT and NCLAT have no power to examine whether a PMLA attachment order is valid or not. 
  • Any challenge to such an attachment must go through the special legal process set up under the PMLA itself.
  • This part of the ruling relied on an earlier Supreme Court judgment — Embassy Property Developments Pvt. Ltd. v. State of Karnataka. 
  • The tribunal also pointed to a 2025 circular from the Insolvency and Bankruptcy Board of India (IBBI). 
  • This circular had already advised insolvency professionals to approach the Special Court under PMLA if they want attached assets returned.

Conclusion

  • This ruling draws a clear boundary between two important laws. The IBC protects legitimate business recovery, but it cannot be misused to shelter alleged criminal wealth. 
  • The judgment strengthens PMLA's reach, reaffirming that insolvency cannot become a route to escape accountability for financial crimes.

Source: TH | IE

IBC-PMLA Conflict FAQs

Q1: What is the IBC-PMLA Conflict in insolvency law?

Ans: The IBC-PMLA Conflict concerns whether the Insolvency and Bankruptcy Code's moratorium can prevent attachment of assets alleged to be proceeds of crime under the PMLA.

Q2: What did the NCLAT rule in the IBC-PMLA Conflict?

Ans: In the IBC-PMLA Conflict, the NCLAT held that the IBC moratorium does not protect assets suspected to be proceeds of crime from ED attachment.

Q3: Why does the IBC-PMLA Conflict arise between two special laws?

Ans: The IBC-PMLA Conflict arises because the IBC focuses on corporate insolvency resolution, while the PMLA targets confiscation of assets linked to money laundering.

Q4: Can insolvency tribunals decide issues under the IBC-PMLA Conflict?

Ans: Under the IBC-PMLA Conflict, insolvency tribunals cannot review the validity of ED attachment orders, which must be challenged through PMLA's statutory mechanism.

Q5: Why is the IBC-PMLA Conflict significant for creditors and enforcement agencies?

Ans: The IBC-PMLA Conflict confirms that insolvency cannot become a shield for alleged criminal assets, balancing creditor recovery with anti-money laundering objectives.

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